Gov Signs House Dem Bills to Make Major Investments in Affordable Housing﻿

(May 17) – A package of
bills that will make substantial investments in Colorado’s affordable housing
challenge were signed into law today in Westminster. Together, these
bills account for a historic investment in affordable housing in Colorado.
Affordable housing is one of the state’s most pressing issues and finding
common-sense solutions to addressing the housing crunch has long been a
priority for Democratic lawmakers.

The first bill signed by
the Governor was HB19-1228, Rep. Shannon Bird and Rep. Brianna Titone’s bill to
boost the supply of affordable housing in the state by increasing the Affordable
Housing Tax Credit, which helps leverage private funding for affordable housing
projects across the state.

“The unique benefit
of the tax credit is that it is part of a solution, rather than a band-aid, to
concerns we have about keeping people out of poverty, breaking cycles of
intergenerational poverty and giving a critical hand up – instead of a hand
out,” said Rep. Shannon Bird,
D-Westminster. “ I feel honored to have sponsored this important piece of
legislation that will help ensure that more working families will have a safe,
quality, affordable place to call home.”

“We need to help ease
the housing crunch. This bill will help seniors and hardworking people across
our state,” Rep. Titone, D-Arvada
said when the bill passed the House. “Access to affordable housing can help
grow the middle class and our economy which will give back to Colorado in a lot
of different ways. This bill has no district boundaries. Affordable housing is
needed everywhere across the state.”

Affordable Housing Tax
Credit raises private sector equity needed to support the development and
preservation of affordable rental housing. It currently is authorized to
allocate only $5 million; HB19-1228 will increase the available tax credits to
$10 million in 2020-24. The Affordable Housing Tax Credit supports key
affordable housing needs such as workforce housing, homeless housing, and
senior housing across Colorado. It’s one of the state’s most effective tools
for increasing available affordable housing across the state. Colorado’s

Between 2015-2018, the
program supported 4,796 affordable rental units. The development of these homes
is estimated to have generated over $1.9 billion in economic impact in
Colorado.

The Governor also signed
HB19-1245, sponsored by Rep. Mike Weissman, D-Aurora, which will contribute
more funding to the Housing Development Grant Fund within the Department of
Local Affairs. The funding could then be used to improve, preserve, or expand
the supply of affordable housing in Colorado.

“This new law is a
significant and meaningful approach to address the state’s affordable housing
crisis,” said Rep. Weissman. “Housing
can strengthen a person’s ability to support a family, maintain a job and live
a healthy life. This law is a calibrated approach that will benefit all of
Coloradans – especially our most vulnerable families and individuals.”

Under current law, a
business can keep 3.3 percent of sales tax that it collects for administration
purposes. With this new bill, vendors can retain up to four percent of the
vendor fees up to a $1,000 monthly cap. This minor statutory change will result
in roughly $23 million in revenue in the first year and $45-50 million per year
afterwards. A third of these funds would be used to provide affordable housing to
low income families.

Next on the docket was
HB19-1322, sponsored by Rep. Dylan Roberts, D-Avon, and Rep Perry Will, R-New
Castle. This important new law will expand funding for affordable housing
statewide. Under this bill, money will come from the State Treasurer from the
Unclaimed Property Trust Fund and be deposited into the Housing Development
Grant Fund to supplement existing money.

“This new bipartisan law
is a responsible way to support affordable housing. It will allow our local
communities to decide what is best for them and land support for important
projects from the state,” said
Rep. Roberts. “Housing is one of the most important issues across the state
and this law focuses our rural communities who need help and ensures the state
is a strong partner in the effort to support affordable housing projects.”

The Governor also signed
HB19-1319 sponsored by Rep. Bird. This new law creates incentives to assist
land developers in providing affordable housing statewide, and also identify
undeveloped land owned by the state that could be developed for affordable
housing purposes.